THE CRYPTO KEEPER: MINE YO DAMN CRYPTO

MINING DIGITAL CURRENCY

Cryptocurrency mining is just matrix talk for the verification processes and solutions involved with transactions recorded on the blockchain. A lot of digital currency veterans are mentioning itʼs not worth the investment, but you still have to remember, that digital currency is still in its early stages and there are going to be tons of coins, being introduced to the digital exchanges and transactions as time goes by. Just think about all the products or services weʼre going to be able to purchase with digital currency and then, add to this all the transactions associated with all those purchases.

Letʼs say for example, you want to buy a gift card with Bitcoin, the fees and the amount associated with that transaction need to be verified and processed on the blockchain and this is where the digital currency miners, are recruited to process and verify those transactions.

What is a blockchain?

Bitcoin.org states, “The blockchain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending Bitcoins that are actually owned by the spender. The integrity and the chronological order of the blockchain are enforced with cryptography [This is where John Nash becomes very relevant and if you havenʼt read my post ‘Cryptocurrency Financial Freedom or Enslavement?ʼ then, you should check it out here.

Bitcoin operates on a decentralized network, which according to Peter Van Valkenburgh, of Coin Center, is able to explain it in a manner listed in the video below.

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Back to the business. Valkenburgh expresses, the “Bitcoin network: decentralized (there is no dominant point of failure or authority) transaction recordation and validation.” Since, each cryptocurrencyʼs network is different with the only exception being, that the main intent behind cryptocurrency revolves around decentralization. He also states, “thus, the miners are playing the role of bank tellers: inspecting checks, making sure all the appropriate signatures and account numbers are there, checking the customerʼs ID, and looking for proof that the customer has enough cash-on-hand to fund the transaction.”

Now Iʼm going to attempt to do the same. Insert video here of someone tripping infinitely, accidentally setting themselves on fire, and simultaneously getting run over by a car. I couldnʼt find the video, to make the point, but you get the picture.

In a nutshell, the cryptocurrency miners are verifiers of all the steps involved in the recording and the validity of transactions, that are going to be processed and completed on the blockchain.

WHAT ARE MY OPTIONS?

Well, that depends. If you want to go the traditional route you can buy all the hardware (mainly, a really CPU, RAM and a really good graphics card), but many have decided to forgo this route and opted for cryptocurrency mining farms, which cut costs a great deal.

FACTORS TO CONSIDER MINING DIGITAL CURRENCY & BUNCH OF OTHER SHIT IʼM TAKING IN COMPUTER SCIENCE, THATʼS GOING TO HELP YOU AND ME BANK SOME COIN:

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I gave up @ 1:29 and don't know how the fuck this kid did it.

Electricity:

Cryptocurrency mining consumes a lot of power. So, unless youʼve got an unlimited energy source, maybe mining yourself isnʼt such a bad idea. The majority of the cryptocurrency mining farms are held at data centers, which are not environmentally friendly. Besides consuming a great deal of electricity, water consumption also becomes an issue, because water towers are used to cool the majority of data centers in order to prevent over processing and heating. There is talk of curbing this energy consumption, by implementing more efficient algorithms, which reduce or eliminate the need for greater processing power. Less lines of code the cryptocurrency is built on equals less processing time and whether your mining crypto or building plastic caps, the only logical conclusion is time is money and if youʼve got a whole lot to spare then, I guess you have bunch of it to waste.

Hardware:

The higher the hash rate the hardware can produce, the more profit you will see. The core hardware components, which are crucial to consider when mining cryptocurrency are the central processing unit, the random access memory and a graphics card. According to Vice News, “crypto mining consumes ninety percent of random access memory,” which can slow your computer down and effect the overall performance and processing time of mining crypto. Aside from the fact the graphics card is important, because as noted by cse1.net, the BIOS verifies the computerʼs video card is operational, so that it can output information to the computerʼs display.” The priority given to the GPUʼs function of speed over the CPUʼs is greater in the case of Bitcoin, because the SHA256 algorithm requires speed for greater output. Bitcoin Wiki explains, that the GPU has a greater number of ALU (performs arithmetic and logical calculations), which is the arithmetic and logical unit and since all crypto harnesses the power of mathematical proofs, a couple of ALUs to help out with calculations isnʼt such a bad idea.

Hash Rate:

The hash rate (if you need to take a 4/20 break, I understand) Bitcoin.org states, “hash rate is the measuring unit of the processing power of the Bitcoin network.”

Price:

Pricing for the cryptocurrency will influence the amount of return you will see. Digital currency is still unfolding and tends to carry a lot of risks, because prices are constantly fluctuating.

Volatility:

The volumes at which the digital currency is trading will also influencethe return you see. If the digital currency is trading at a low volume then of course, there are not as many transactions taking place.

Algorithms:

Cryptocurrency data mining is reliant upon the algorithm used to process transactions on the blockchain. When the algorithm grows in complexity, this equates to a greater reduction on return for you. An algorithm is just some high end way of saying, a set of instructions, that need to be processed. So, with that in mind, the more steps the algorithm has the more lines of code the CPU has to decode, which translates into more energy consumption and some other things, that are not even worth skimming over and less crypto in yo pocket.

Mooreʼs Law:

Moore's Law “posits, that the number of transistors doubles approximately every two years.” This will effect Bitcoin as the complexity of the algorithms grow with Bitcoin, due to the growing number of transactions, that are going to be processed on the blockchain. Mooreʼs Law, comes into play and creates restrictions on the technology currently available. Mooreʼs Law has slowed, which means a decreasing or a plateau of transistors doubling can limit the amount processing power.

The Number of Coins in Circulation:

This is just like gold if you want to buy digital currency then, itʼs good to invest in digital currency, that is limited in supply.

The Developers:

Also, itʼs important to look at the developers of the digital currency. Since digital currency involves programming anyone who has the right mindset and ambition can create their own digital currency. However, there are many developers out there exploiting this digital currency revolution and just creating coins to take advantage of the crowd funding typically associated with starting up your own digital currency.

SO HOW DO THEY DO IT? I DONʼT KNOW THEY JUST DO.

Genisis Minining

Offers several different types of cryptocurrencies and includes Bitcoin, Monero, Litecoin, and Ether. The best part is that you get paid in Bitcoin! They practically do all the work for you. No rigs to setup, expensive hardware to maintain, buy, or sell. Your apartment wonʼt sound like Darth Vader, is your roommate and you get paid. Genesis Mining currently offers plans, with the cheapest plans starting at just $30.00. On average you can net about $1800.00 annually. Again, youʼre not going to get rich over night, but this is a type of ‘set it and forget income.ʼ This can be your coin for car insurance for the year, an on the cheap kitchen renovation, a fancy gym membership, or a really good laptop. They accept major credit cards and cryptocurrency for payment. So, if you are interested, go to Genesis Mining and start banking some coin. Use my referral code when signing up and get a 3% discount Tnt165.

Bitconnect

Is another platform for mining cryptocurrency with fellow cryptocurrency investors, but also offers you the option to buy, sell, trade Bitconnect coin, and offers the latest news on digital currency too. They also have a great affiliate program, which pays you in BITCOIN. If your sold, go over to Bitconnect to signup and find out more. Iʼve only provided a brief overview of two cryptocurrency mining companies, based off my brief and good experience, so far. If you are interested in investing in cryptocurrency mining farms, research before investing a large amount of money. Always good to invest in small amounts first, in order to get an idea of what dealing with the company is like. Also, itʼs good idea to pool with friends and have each one sign up under a different cryptocurrency mining farm and discuss all of your unique experiences with each other. This will save you a great deal of time, by avoiding different signups and potential membership fees.

What do you think about all the hype surrounding cryptocurrency mining? Whether, you choose the traditional route or opt for pooling this type of financial venture, will you even see a return on your investment?

If youʼve enjoyed the posts youʼve read so far then, I can be reached at the addresses listed below. Thanks for reading, following, sharing, and donating. My schoolʼs motto is ‘ʼLearning throughout Life,ʼ if you would like to expand, correct, or just enjoy giving constructive feedback, reply away. Once again, thanks.

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